Money Equifax's Hacking Nightmare Gets Even Worse for Victims

04:20 11 september 2017

04:20 11 september 2017 Source:
Bloomberg

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The hack revealed personal information such as Social Security numbers, addresses, driver’ s license data, and birth dates, putting millions at risk for identity theft. A proposed multibillion-dollar class action lawsuit was filed on Thursday evening . All told, Equifax could be facing as much as bn in claims

Code is seen on the laptop computer screen. (Photographer: Victor J. Blue/Bloomberg). Equifax ’ s Hacking Nightmare Gets Even Worse For finally spur Congress to protect victims of identity theft by stopping corporations from using poison pill arbitration clauses to deprive victims of their day in

If your data had been stolen, Equifax offered a free year of credit monitoring known as “Trusted ID Premier.” But some fine print may also mean that consumers who agree would be giving up the right to sue over many types of damages related to the massive penetration.

Equifax data breach may affect nearly half the US population

Hackers steal sensitive personal information on up to 143 million people from the credit reporting firm.Equifax, a prominent credit reporting firm, said Thursday that it was hacked from mid-May to July, with thieves stealing names, Social Security numbers, birthdates and addresses from its customers.

But for those who got through, a nasty surprise was waiting. If your data had been stolen, Equifax offered a free year of credit monitoring “We are witnessing uncharted depths of corporate duplicity, as Equifax is now targeting its victims ” by using “stealth arbitration agreements,” Meisalas said.

But for those who got through, a nasty surprise was waiting. If your data had been stolen, Equifax offered a free year of credit monitoring “We are witnessing uncharted depths of corporate duplicity, as Equifax is now targeting its victims ” by using “stealth arbitration agreements,” Meisalas said.

The unprecedented breach, which occurred in July but was disclosed on Thursday, is among the largest in U.S. history, affecting 143 million people. The hack revealed personal information such as Social Security numbers, addresses, driver’s license data, and birth dates, putting millions at risk for identity theft. A proposed multibillion-dollar class action lawsuit was filed Thursday evening. All told, Equifax could be facing as much as $70 billion in claims, said Ben Meiselas, an attorney for Geragos & Geragos, one of the firms that filed the lawsuit.

For already panicked consumers, that fine print—an arbitration clause—has caused further frustration, prompting federal lawmakers and at least one state attorney general to condemn Equifax for appearing to force aggrieved consumers to give up their day in court. Social media was flooded with messages of concern, with some fearing that simply using an Equifax website to check whether their information was compromised bound them to arbitration—a private proceeding which consumer advocates and lawyers consider inherently biased in favor of companies.

What to do if you were hit by the Equifax breach

An estimated 143 million U.S. consumers could be affected by a cybersecurity attack carried out against Equifax, one of the nation's three largest credit-reporting companies. Normally one of the first things victims are told to do is to go to a credit-reporting company and request their records to make sure that there are no unauthorized accounts or charges on their existing accounts.This time around, experts suggest checking with Equifax rivals, Experian and TransUnion.

You are using an older browser version. Please use a supported version for the best MSN experience. Equifax ' s Hacking Nightmare Gets Even Worse Hopefully this “conduct will finally spur Congress to protect victims of identity theft by stopping corporations from using poison pill arbitration clauses to

Equifax ’ s hacking nightmare gets even worse for victims .

“We are witnessing uncharted depths of corporate duplicity, as Equifax is now targeting its victims” by using “stealth arbitration agreements,” Meisalas said. Hopefully this “conduct will finally spur Congress to protect victims of identity theft by stopping corporations from using poison pill arbitration clauses to deprive victims of their day in court.”

On Friday, New York Attorney General Eric Schneiderman asked the company to remove the clause as he opened an investigation. (Earlier, it was also revealed that three senior Equifax officers had sold off $1.8 million in holdings after the intrusion was discovered in July. The company’s shares fell almost 14 percent Friday.)

Equifax could divert lawsuits asserting damages as a result of negligence or invasion of privacy into arbitration

Equifax responded to the controversy by an addition to its “frequently asked questions” web page. The company wrote that the arbitration mandate applies only to “the free credit file monitoring and identity theft protection products, and not the cybersecurity incident.” Consumers can opt out of the arbitration provision, but to do so, they have to mail a letter to a post office box in Atlanta, where Equifax is based.

143 million people's data breached in Equifax hack

Credit agency Equifax has admitted that data from 143 million customers may have been compromised in a security breach earlier this year. US, UK and Canadian residents are among those to have their details accessed through a website application vulnerability.The attack was discovered to have run from mid-May until 29 July, but the US company has taken 40 days to inform customers that their personal details were compromised.Three senior executives at the company - which is listed on the New York Stock Exchange - sold shares worth almost &dollar;1.8m before the breach was publicly disclosed.

Late Friday, after a day of criticism, the company said consumers wouldn’t have to give up their right to pursue class actions related to damages stemming from the hacking incident. Equifax also said it tripled to more than 2,000 the number of agents on its call center team to handle questions, and that the website allows consumers to quickly assess whether they were affected.

Earlier, consumer advocates and plaintiffs’ lawyers—who have a vested interest in preserving consumer rights to sue—expressed deep concerns about the arbitration clause. Equifax could divert from court lawsuits asserting damages as a result of negligence or invasion of privacy, said Lauren Saunders, associate director of the National Consumer Law Center, and Jim Francis, an attorney at Francis & Mailman P.C. in Philadelphia. Mailman recently won a $60 million jury trial against TransUnion LLC, another large credit reporting firm.

Whether the company’s statements late Friday will prevent it from asserting the arbitration clause in the future is unclear. The clause, buried in the company’s terms of use, obligates purchasers to individually resolve “any claim, dispute, or controversy” in arbitration proceedings. In such a hearing, one that is closed to the public and paid for by Equifax, a single person would hear arguments from the consumer and the company before making a final, binding decision.

A former conman explains the 3-step process he uses to protect himself against identity theft

Dario Cantatore / Stringer / Getty ImagesOn Thursday, a massive data breach at credit bureau Equifax compromised the personal information of as many as 143 million people. Frank Abagnale probably isn't surprised. You may recognize his name fromOn Thursday, a massive data breach at credit bureau Equifax compromised the personal information of as many as 143 million people.

The National Consumer Law Center describes arbitration as “biased, secretive, and lawless,” in part because arbitrators are blocked from seeing the full extent of a company’s alleged wrongdoing. In a court proceeding, plaintiffs who overcome a motion to dismiss can demand pre-trial evidence from a defendant company, including internal files and witness depositions.

A 2015 study by the U.S. Consumer Financial Protection Bureau, the federal agency created in the wake of the financial crisis, found that more than 75 percent of consumers weren’t even aware they were subject to arbitration clauses. Fewer than 7 percent knew that the clauses restricted their ability to sue, the consumer bureau said.

Claims against the company “shall have the broadest possible construction”

According to the terms of use for Equifax’s TrustedID Premier, “by consenting to submit your claims to arbitration, you will be forfeiting your right to bring or participate in any class action (whether as a named plaintiff or a class member) or to share in any class action awards, including class claims where a class has not yet been certified, even if the facts and circumstances upon which the claims are based already occurred or existed.”

A separate terms of use from Equifax states that all users of the company’s products are bound by a more expansive arbitration clause, said Saunders of the Consumer Law Center, who argued that the company could have license to block almost all lawsuits. Those terms of use state that claims against the company “shall have the broadest possible construction.”

The only exception are claims against the company in which consumers assert damages under the Fair Credit Reporting Act.

Francis, the plaintiffs’ attorney, said that the circumstances of the latest breach would probably make it difficult for Equifax to prevail in forcing aggrieved consumers into arbitration. But Imre Szalai, a professor at Loyola College of Law in New Orleans who has studied arbitration for 15 years, said the success of such efforts often depends on the personal leanings of judges who initially handle lawsuits filed by consumers. They will decide whether to send them back to Equifax, and arbitration.

Inside the Shadowy World of Revenge Hackers .
Companies are starting to hack back against companies to try to prevent—or at least limit the damage of—Equifax-style disasters. One problem: It’s not all that legal.The idea, one member of the team said, “was full breach. Collect intel on suspects; who possibly had been caught [by the hackers’ attacks],” and then destroy any stolen data. The Daily Beast granted anonymity to the source, who worked with the hacking team on behalf of the bank, to discuss sensitive industry practices. They did not name the bank.

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The hack revealed personal information such as Social Security numbers, addresses, driver’ s license data, and birth dates, putting millions at risk for identity theft. A proposed multibillion-dollar class action lawsuit was filed on Thursday evening . All told, Equifax could be facing as much as $70bn in claims

Code is seen on the laptop computer screen. (Photographer: Victor J. Blue/Bloomberg). Equifax ’ s Hacking Nightmare Gets Even Worse For finally spur Congress to protect victims of identity theft by stopping corporations from using poison pill arbitration clauses to deprive victims of their day in

But for those who got through, a nasty surprise was waiting. If your data had been stolen, Equifax offered a free year of credit monitoring “We are witnessing uncharted depths of corporate duplicity, as Equifax is now targeting its victims ” by using “stealth arbitration agreements,” Meisalas said.

But for those who got through, a nasty surprise was waiting. If your data had been stolen, Equifax offered a free year of credit monitoring “We are witnessing uncharted depths of corporate duplicity, as Equifax is now targeting its victims ” by using “stealth arbitration agreements,” Meisalas said.

You are using an older browser version. Please use a supported version for the best MSN experience. Equifax ' s Hacking Nightmare Gets Even Worse Hopefully this “conduct will finally spur Congress to protect victims of identity theft by stopping corporations from using poison pill arbitration clauses to